Tax compromise: what do experts say?
The debates entitled “Tax Compromise: How Ukrainian Business Is to Live in a New Way?” took place on July 7, 2014. The event was organized by LIGA:ZAKON in the framework of “Law Is for Everyone” initiative. Cai & Lenard Law Firm, one of the key practices of which is the tax law, was represented by its Managing Partner Konstantin Pilkov.
passed in the first reading became the occasion for the debates. The document offers
business an opportunity to use a tax compromise. That is, the taxpayers are
exempted from financial, criminal and administrative responsibility upon
condition that they will pay 10% of the sum of understated corporate income tax and VAT within 60 days from the date of the law’s
entry into force.
Among the speakers and experts of the event were public authorities, representatives of non-governmental organizations, business and legal market players.
In commenting upon the debates, Mr. Pilkov noted: “This is a crude approach to the delicate matter. It appeared that the taxpayers that used “abusive tax shelters” will have an opportunity to pay 10 % of the sum of understated tax obligation and get rid of a duty to pay the remaining 90%. At the same time the conscientious taxpayers have all grounds to expect they also may be required to pay that 10%, even in case their transactions were actually performed, related to the economic activity and completed and executed in accordance with tax accounting and reporting requirements”.